Sydvaranger mine

A Raw Material for the Steel Industry’s Transition

The steel industry is undergoing a profound transformation. One of the most promising pathways for reducing carbon emissions from steel production is the manufacture of direct reduced iron (DRI) using hydrogen generated from renewable energy sources.

This process requires iron ore concentrate with a very high iron content and low levels of impurities such as silica and aluminium. Today, concentrates containing at least 67 per cent iron are considered an important prerequisite for producing green steel. Only around four per cent of the world’s iron ore resources meet these requirements, making access to suitable raw materials increasingly limited.

Hydrogen-based direct reduction is a significantly more environmentally sustainable process than conventional blast furnace production. Instead of producing traditional pig iron, it generates the cleaner intermediate product direct reduced iron (DRI), often referred to as sponge iron. When DRI is produced using hydrogen and renewable energy, it is commonly known as H-DRI (Hydrogen Direct Reduced Iron).

From High Grade to Ultra-High Grade

The iron ore at Sydvaranger is ideally suited for the production of exceptionally high-quality concentrate. During the mine’s previous period of operation, magnetite concentrate with an iron content of 68 per cent was routinely produced. However, the concentrate contained relatively high levels of silica impurities, making it unsuitable for direct reduction applications.

Ahead of the planned restart, GRANGEX is introducing an additional final stage to the beneficiation process, enabling silica levels to be significantly reduced while increasing the iron content to more than 70 per cent. A concentrate of this quality comfortably exceeds the requirements for direct reduction-based steelmaking and provides the foundation for Sydvaranger to supply raw material to the rapidly growing market for low-emission steel production.

Long-Term Potential

Sydvaranger is expected to produce approximately 63 million tonnes of ultra-high-grade magnetite concentrate over its planned 25-year mine life.

The project benefits from access to existing mining, processing and port infrastructure. The finished concentrate will be exported through Sydvaranger’s port terminal in Kirkenes, providing efficient logistics and reliable access to customers across Europe and global markets.

With a high-quality raw material base, established infrastructure and a clear focus on the future of steel production, Sydvaranger is well positioned to become an important contributor to Europe’s green industrial transition and the continent’s self-sufficiency in industrially critical metals.